Shinhan Financial Group enters the non-life insurance market by acquiring a foreign non-life insurance company.
According to the financial industry on the 31st, Shinhan Financial Group recently held a board meeting and decided to acquire BNP Paribas Cardiff Insurance (hereinafter referred to as Cardiff Insurance).
It is also known that a stock purchase contract has already been signed to acquire a 95% stake in Cardiff’s major shareholder, BNP Paribas, at 40 billion won.
There is no official announcement from Shinhan Financial Group yet, but once the acquisition is confirmed, the number of subsidiaries of Shinhan Financial Group will increase from 16 to 17.
Cardiff Insurance is a joint non-life insurance company created after BNP Paribas Cardiff Life Insurance acquired shares in Ergodaum Direct Non-Life Insurance in 2014.
As of the first half of this year, it is a non-life insurance company with assets of 18.4 billion won, and it posted a net loss of 5.4 billion won in the first half.
The reason Shinhan Financial Group is taking over a small insurer with a loss is because, as a comprehensive financial group, there is no affiliated non-life insurer yet.
(Photo = Yonhap News)